Thank you, Do I need to setup a vhost first for that subdomain?
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iUsableSep 27 '11 at 10:46

You can always a vhost for it with the same DocumentRoot as the WWW if you want. You can also change the ServerAlias of your www vhost to add more domains eg: ServerAlias domain.com www.domain.com sub.domain.com.
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Book Of ZeusSep 27 '11 at 10:50

Sorry, am a n00b with apache2. So, 2 things - 1. I want to only allow for a fixed subdomain and not ([a-z0-9]) as per your code, should I just change that to ^(sub)? 2. How do I set the vhost up again (too n00b for you? sorry)?
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iUsableSep 27 '11 at 10:57

1) view my updated answer. 2) Did you create a sub domain entry? Did you point it to the same place as the www?
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Book Of ZeusSep 27 '11 at 11:03

1) I am staring at it & can't find a single change yet, am I seriously lost? 2)No nothing else in that .htaccess file but what I have shown.
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iUsableSep 27 '11 at 11:05